Extroversion with the Influence on Macroeconomy and Bank Risk Microloans in the United States

Abstract

This study addressed the perceived negative individual characteristics that may precipitate failure of small business owners in securing microloans. The purpose of this quantitative, non-experimental, correlational study is to examine how the neuroticism, and extroversion of small business owners relate to their ability to secure microloans for their business needs in the United States. Goldberg’s Big Two Theory provided a framework for the study, which included a quantitative, survey-based correlational design. Research questions focused on the relationship between neuroticism, and extroversion of the Big Two Theory and the ability of small business owners to secure microloans for their business needs. A sample of approximately 177 small business owners in the United States were recruited to complete an online survey assessing their neuroticism, and extroversion and ability to secure microloans. A binary logistic regression analysis was conducted to address the research aims. The findings of this study imply an overall significant effect of neuroticism, and extroversion on small business owners’ ability to secure microloans and the influence on macroeconomy along with bank risk management after controlling for age, gender, and ethnicity. Individually, out of the neuroticism, and extroversion were found to be not significant and correlated with the ability of the participants to obtain business financing. This study will contribute to the existing practice and has the potential for positive social change among small entrepreneurs through evaluation of the theoretical foundations and assumptions underpinning the study objective.